Citadel billionaire Ken Griffin defends Melvin stake towards ‘an insane conspiracy principle’

Ken Griffin, the billionaire CEO of hedge fund Citadel, defended his $2 billion funding in brief vendor Gabe Plotkin’s Melvin Capital final month amid the peak of the GameStop mania.

“No, I feel Gabe Plotkin is without doubt one of the most interesting buyers of his technology,” Griffin advised CNBC’s Andrew Ross Sorkin on “Squawk Field.”

The remark was in response to a query from Sorkin about whether or not Griffin’s funding was a mistake as a result of it created questions on Griffin’s motivations in propping up Plotkin amid his battle with retail Reddit merchants who had been pumping up the value of GameStop.

“If I needed to run my enterprise on the potential for an insane conspiracy principle rising at any time limit, I might don’t have any enterprise,” Griffin stated.

Apart from working hedge fund Citadel, Griffin is the founding father of Citadel Securities, a market maker that handles about 40% of U.S. retail inventory order stream, together with from brokerages like free-trading app Robinhood.

After information of the funding from Citadel and Point72 got here out, hypothesis abounded on social media platforms about Griffin’s attainable function within the unfolding drama. In a now-deleted tweet, Twitch co-founder Justin Kan stated he “bought a tip” that Griffin could have been concerned in Robinhood’s transfer to throttle entry to GameStop bulls.

In a while, Robinhood defined that it was its clearinghouse, a behind-the-scenes market participant referred to as the Depository Belief and Clearing Corp., that had demanded billions of {dollars} in collateral to again GameStop trades, forcing the brokerage to scale back entry for its customers till it may increase capital.

Within the wide-ranging interview, Griffin additionally stated that there was “little question” that the quantity of brief promoting shall be decreased because of the facility that Reddit-fueled retail merchants demonstrated with GameStop.

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